Nasdaq’s Shift To Round-The-Clock Stock Trading Due to Crypto, Says Exchange Executive

Stock and other traditional financial asset traders around the globe are increasingly looking for opportunities to buy and sell assets beyond regular trading hours. This growing demand has prompted two of the largest stock markets in the United States, Nasdaq and the New York Stock Exchange (NYSE), to consider offering round-the-clock trading options.

According to Giang Bui, Nasdaq’s head of U.S. Equities & Exchange-Traded Products, the shift towards 24/7 trading is a response to the evolving needs of traders worldwide. “There’s a lot of demand globally for U.S. stocks, and people want to trade within the hours that they’re typically awake,” Bui stated at the Digital Asset Summit in New York. He also highlighted that the increasing popularity of trading cryptocurrencies around the clock has influenced this trend.

Both Nasdaq and the NYSE are currently in the process of seeking regulatory approval to operate their trading platforms 24 hours a day, potentially extending trading hours to five or even seven days a week. While Nasdaq has already begun discussions with regulators regarding this change, the NYSE has reportedly received the green light to proceed.

The implementation of round-the-clock trading can offer several benefits to the financial markets, including higher trading volumes and improved market liquidity. By eliminating the constraints of specific time zones, traders will have more flexibility to engage in buying and selling activities at their convenience. Currently, the U.S. stock market operates from 9:30 a.m. to 4 p.m. Eastern Time.

“We’re hearing it across the board from global broker dealers, clients who they’re servicing, even within the U.S., there’s a number of U.S. brokers that already are offering overnight trading because their customers are used to trading crypto in those hours,” added Bui.

Nasdaq, known for its innovative approach, has already listed various crypto-related products, such as the iShares Bitcoin Trust (IBIT) and Solana (SOL) futures ETFs issued by Volatility Shares. The exchange has been at the forefront of embracing digital assets, with the iShares Bitcoin Trust experiencing the most successful ETF debut in U.S. history.

As the financial landscape continues to evolve, the move towards round-the-clock trading by major stock exchanges reflects a growing trend towards greater accessibility and flexibility for traders worldwide. With the potential for increased market activity and improved liquidity, the shift towards extended trading hours could reshape the dynamics of traditional financial markets.